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Stockman accepts Bitcoin donations, but FEC doesn't

Rep. Steve Stockman says he'll be accepting Bitcoin to fund his campaign for the U.S. Senate against Sen. John Cornyn. One catch: The Federal Election Commission deadlocked in November when asked if political

Rep. Steve Stockman says he'll accept Bitcoins to help fund his campaign for the U.S. Senate against Sen. John Cornyn.

One catch: The Federal Election Commission deadlocked in November when asked whether political action committees and candidates could accept the virtual currency.

Stockman tweeted a link to a Business Insider story saying he would accept Bitcoins in his uphill Texas GOP primary against Cornyn, the Senate's No. 2 Republican leader. In a video posted on YouTube, Stockman said he believes digital currency is about "freedom," as in choosing "what you do with your money" and keeping "your money without people influencing it by printing money or through regulation."

Bitcoin is a digital currency that allows users to transfer assets from virtual "wallets" without the help of a bank. That's one reason why the transactions are difficult to trace. Software controls how many Bitcoins are produced, unlike paper currency printed by central banks.

The FEC split 3-3 in November on a proposal to allow bitcoin donations in political campaigns. The three Democratic-appointed commissioners wanted more time to develop a policy on Bitcoin donations while the three GOP-appointed members were in favor of accepting the virtual currency.

"We have not seen the last of Bitcoin at the FEC," chairwoman Ellen Weintraub was quoted as saying by The Washington Post.

Whether the currency is virtual or paper, Stockman is going to need money to stay competitive in Texas. Cornyn had $7 million in his campaign account, compared with $32,000 for Stockman when he filed his surprise primary challenge. The congressman isn't getting institutional support from groups such as the Club for Growth, which helps insurgent Republicans in their fight against veteran GOP lawmakers.